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Labour disputes have intensified in China in recent years, alongside labour shortages and wage inflation, particularly since 2008 when several Chinese labour related laws were issued or updated. The paper describes basic situations of labour disputes and examines the determinants of labour disputes from macro and micro perspectives.
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OECD DEVELOPMENT CENTRE
LABOUR MARKET CHANGES, LABOUR DISPUTESAND SOCIAL COHESION IN CHINA
by
By CAI Fang and WANG Meiyan
Research area:Perspectives on Global Development: Social Cohesion
January 2012
CENTRE DEDÉVELOPPEMENT CENTRE
DEVELOPMENT
Working Paper No. 307
2 © OECD 2012
DEVELOPMENT CENTRE
WORKING PAPERS
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©OECD (2012)
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CENTRE DE DÉVELOPPEMENT
DOCUMENTS DE TRAVAIL
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©OCDE (2012)
Les demandes d'autorisation de reproduction ou de traduction de tout ou partie de ce document devront
être envoyées à [email protected]
© OECD 2012 3
TABLE OF CONTENTS
PREFACE ....................................................................................................................................................... 4
RÉSUMÉ ........................................................................................................................................................ 6
ABSTRACT .................................................................................................................................................... 6
I. INTRODUCTION ..................................................................................................................................... 8
II. DESCRIPTION OF LABOUR DISPUTES ........................................................................................... 11
III. DETERMINANTS OF LABOUR DISPUTE INCIDENCE .............................................................. 17
IV. GOVERNMENT INITIATIVES .......................................................................................................... 24
V. CONCLUSIONS AND POLICY SUGGESTIONS ............................................................................. 31
REFERENCES ............................................................................................................................................. 33
OTHER TITLES IN THE SERIES/ AUTRES TITRES DANS LA SÉRIE .............................................. 34
4 © OECD 2012
PREFACE
Jobs are important in maintaining social cohesion. Employment provides income, but also
a sense of self-worth and a meeting place for social interactions that weave the social fabric. With
over 200 million unemployed globally, the number of jobs created has taken centre stage,
especially in countries hit hard by the economic crisis. And yet, labour relations have become
tense in many parts of the world, including those still experiencing economic growth. In 2010,
China witnessed a marked increase in strikes, labour disputes and even suicides in the
workplace. Understanding the economic and institutional determinants of good labour relations
matters for designing and implementing better labour market policies.
The increase in labour disputes in China coincided with the end of the era of surplus
labour. While labour was abundant in rural hinterlands, manufacturing firms could rely on
cheap labour as migrant workers would still be better off than if they stayed at home. As it
became increasingly difficult for manufacturing firms in urban centres and the coastal provinces
to recruit labour, wages were bid up throughout the economy. This process however, was all but
smooth, as the increase in labour disputes shows. What is needed is a set of labour market
institutions that help the transition in labour markets to be not only efficient, but also peaceful
and equitable.
This paper by Cai Fan and Wang Meiyan, from the Institute of Population and Labour
Economics of the Chinese Academy of Social Sciences, documents the increase in labour disputes
in China and seeks to understand their determinants. The main finding is that the increase in
disputes is linked to a change in regime in the labour market with the end of surplus labour. The
paper therefore calls for further advances in establishing labour market institutions to adapt to
the new labour market situation. The paper finds that disputes result from a better awareness of
rights on the part of workers and that they are more common in thriving and export-oriented
areas. The authors go on to discuss the Chinese government’s responses to the growing problem,
from pro-active labour market policy to increasing the importance of collective contracts. In
doing so, this paper provides an important building block in the understanding of the role of
labour market institutions for social cohesion.
© OECD 2012 5
This paper was written as a background document for the Perspectives on Global
Development 2012: Social cohesion in a shifting world along with case studies on Chile and India.
This work – with the analysis of the Latin American middle class in the Latin American Economic
Outlook 2011 and that of youth employment in Africa in the forthcoming African Economic Outlook
2012 – is part of a wider effort at the OECD Development Centre to identify good practices with
an integrated view of the state. These are the policies that, ultimately, make up development
strategies that foster social cohesion.
Mario Pezzini
Director
OECD Development Centre
January 2012
6 © OECD 2012
RÉSUMÉ
Accompagnant les pénuries de main-d’œuvre et l’inflation des salaires des dernières années, les
conflits du travail se sont intensifiés en Chine, particulièrement après 2008 lorsque plusieurs lois
régissant l’emploi chinois furent promulguées ou actualisées. Ce papier décrit les situations
caractéristiques des conflits du travail et en examine leurs déterminants dans une perspective
macroéconomique et microéconomique. Il trouve qu’avec l’arrivée au point de retournement de
Lewis, les travailleurs sont plus conscients de leurs droits et plus à même de les défendre sur le
marché du travail. Ce document de travail analyse également le rôle des politiques d’emploi du
gouvernement et des institutions du marché du travail dans la promotion de la cohésion sociale
durant la phase de transition actuelle. D’un point de vue macroéconomique, les régions à plus
fort PIB par tête ont une plus grande incidence des conflits du travail. Plus la proportion de la
valeur des exportations dans le PIB d’une région est grande, plus l’incidence des conflits du
travail sera importante. D’un point de vue microéconomique, les travailleurs aux niveaux de
capital humain plus élevés ont une probabilité plus forte d’initier le conflit du travail. Le
gouvernement chinois a entrepris des politiques d’emploi proactives pour promouvoir l’emploi
et les institutions du marché du travail se sont développées rapidement. Cependant, il reste
encore beaucoup à faire pour améliorer le développement des institutions du marché du travail.
Classification JEL: J52, J20, O15.
Mots-clés : Conflits du Travail, Cohésion Sociale, Point de Retournement de Lewis
ABSTRACT
Labour disputes have intensified in China in recent years, alongside the labour shortages
and wage inflation, particularly since 2008 when several Chinese labour related laws were issued
or updated. This paper describes basic situations of labour disputes and examines the
determinants of labour disputes from macro and micro perspectives and finds that the advent of
the Lewis Turning Point enlightens the awareness of workers striving for rights and interest in
the labour market. The paper also examines how government employment policies and labour
market institutions help foster social cohesion during the current transition phase. From a macro
perspective, the paper finds that regions with higher GDP per capita have a higher labour
dispute incidence. The higher the proportion of export value in GDP in a region, the higher the
© OECD 2012 7
labour dispute incidence. From a micro perspective, the paper finds that workers with higher
human capital levels are more likely to initiate a labour dispute. The Chinese government has
taken proactive employment policies to promote employment and labour market institutions
have been developing rapidly. However, there is still much to do to improve labour market
institution building.
Classification JEL: J52, J20, O15.
Key words: Labour Dispute, Social Cohesion, Lewis Turning Point
8 © OECD 2012
I. INTRODUCTION
The strictly implemented one-child policy, rapid economic growth and fundamental
social transformation, have brought about a profound demographic transition in China within a
very short period of time compared to most developed countries (Wang and Mason, 2008; Du,
2005). During the reform period, the stage of demographic transition in China was characterised
by a sharp drop in fertility, a rapid decline in the proportion of youth, a slowdown of working-
age population growth, and a rapid increase in the proportion of elderly. When the pace of the
decline in the proportion of youth exceeded that of the increase in the proportion of elderly,
China began to enjoy a sufficient labour supply, a result of productive population structure (Cai,
2010; Cai and Wang, 2005a). As the demographic transition process continues, the growth of the
working-age population becomes slower, whereas population ageing speeds up.
Since about 1980, the growth of the aged population has accelerated, whilst the growth of
working-age population has slowed down considerably, and the growth of youth population has
shrunk. The implication of such demographic dynamics is that the long-standing low fertility
rate leads to an inadequacy of labour supply as the growth in working-age population first slows
and then tapers off. According to an updated prediction (United Nations, 2009), the year 2015
will be China’s turning point when the population aged 15 to 64 will stop increasing and begin
shrinking.
According to a more detailed prediction (Hu, 2009), which takes into account the impacts
of rural-to-urban migration, labour demand in the urban sector has been met by rural labour
migration in recent years. By 2015, the incremental working age population in urban areas will
be less than that of the reduced working-age population in rural areas, and the total working-age
population will begin to shrink, the same conclusion of the UN prediction. This implies that,
without substantial enhancement of wages and other incentives, migrant workers will not fill the
gap vacated by rapid reduction of the urban labour force.
This decline in the growth rate and the absolute number of working-age population leads
to an inevitable labour shortage, a challenge that the Chinese economy has to confront. Labour
shortage first emerged in the Pearl River Delta region in 2003 and has since expanded to the
Yangtze River Delta regions and to inland provinces, the general source of migrant workers.
Gradually it has become a national phenomenon in China (Cai and Wang, 2005b; Zhang, 2008;
Wang, 2005).
With the emergence and expansion of labour shortages, wages have been growing
rapidly in both agricultural and non-agricultural sectors (Wang, 2010b). In recent years, labour
disputes have intensified alongside labour shortages and wage inflation, particularly after 2008
when several Chinese labour laws were issued or updated, spurring enlightened workers to
© OECD 2012 9
voice their various demands in the labour market1. Labour disputes take various forms,
including workers’ initiation of labour disputes and other collective actions such as complaints
and strikes. In addition, there are other events indicating employment conflicts such as chain
suicides and frequent employee turnovers.
According to Lewis (1972) and Ranis and Fei (1961), the Lewis Turning Point can be
referred to as the period of time at which expansion of labour demand exceeds that of labour
supply, resulting in rising wage rates for ordinary workers, while agricultural sector wages are
not yet determined by marginal productivity of labour and a difference of marginal productivity
of labour between agricultural and non-agricultural sectors remains. The commercial point
occurs when the wage rates in agricultural and non-agricultural sectors are both determined by
their marginal productivity of labour and the gap in productivities disappears. Only at this time
does the dual economy end.
The appearance of unskilled labour shortages and wage increases in China imply the
advent of the Lewis Turning Point, which is empirically confirmed to be accompanied by the
Kuznets Turning Point – that is, the point at which income inequality reaches its peak and starts
to decrease (Minami and Ono, 1981). However, the existing income distribution setup cannot be
altered spontaneously.
The intensified labour disputes of recent years have drawn much attention from scholars
and policy makers. Some claim that it is a sign of the deterioration in labour relations. We
borrow Hirschman’s framework (Hirschman, 1970) to interpret the newly emerged
phenomenon. Hirschman uses three expressions – exit, voice and loyalty – to illustrate
mechanisms by which citizens, consumers and workers express their dissatisfaction. When
members of an organisation perceive that the organisation is demonstrating a quality or benefit
decrease to them, they can exit or they can voice.
According to Hirschman (1970), exit and voice also interact in unique and sometimes
unexpected ways. Exit might be reduced if greater opportunity for feedback and criticism were
provided. With the coming of the Lewis Turning Point, labourers face more employment
opportunities and they then obtain the power to “exit” or the rights to “vote with their feet”.
When workers are dissatisfied with their jobs, they have two choices. One choice is simply to
choose to quit. The other choice is to take actions to voice their claims in front of employers, such
as labour disputes, complaints, collective bargaining and, more extreme, strikes, in order to seek
higher pay and better working conditions without leaving the firms.
Since more employment opportunities give workers more bargaining power with their
employers, the increase of labour dispute cases cannot be seen as a sign of aggravation of labour
relations. Instead it is an inevitable result of labour market changes with the coming of the Lewis
Turning Point. Intensified labour disputes are without a doubt an indication of stronger demand
1. In 2008 alone, three labour related laws were introduced: i) Employment Contract Law which emphasises
enhancing employment security and providing better protection for migrant workers and the urban
working vulnerable; ii) Employment Promotion Law which clearly claims the responsibility of
governments in promoting employment and in eliminating various kinds of labour market
discrimination; and iii) Labor Disputes Mediation and Arbitration Law which provides a legal framework
for improving labour relations.
10 © OECD 2012
for labour market institutions, which are expected to be helpful for maintaining and improving
social cohesion resulting in an urgent and challenging task for the Chinese government.
The rest of this paper is organised as follows: Section II introduces the data and describes
the situations of labour disputes; Section III examines the determinants of labour disputes from
both macro and micro perspectives; Section IV analyses how government employment policies
and labour market institutions help foster social cohesion; Section V concludes and suggests
policy priorities and reform directions so as to strengthen social cohesion after the Lewis Turning
Point via labour market institutions building.
© OECD 2012 11
II. DESCRIPTION OF LABOUR DISPUTES
In this paper, we employ both macro and micro data. The macro data are from the China
Labor Statistical Yearbook, the China Compendium of Statistics 1949-2008 and the China Statistical
Yearbook. The micro data employed includes three micro survey datasets.
The first dataset is the China Urban Labour Survey (CULS3). There are three waves of
CULS, which are called CULS1, CULS2 and CULS3. They were conducted by the Institute of
Population and Labour Economics at the Chinese Academy of Social Sciences in 2001, 2005 and
2010. In this paper, we will utilise only CULS3, which was conducted in six big cities (Shanghai,
Wuhan, Shenyang, Fuzhou, Xian and Guangzhou). The cities were chosen to provide regional
diversity and variation in the size of the state versus private sectors. Within each city, 700 urban
households and 600 migrant households were interviewed.
The second micro dataset is a survey on manufacturing enterprises (MES), conducted by
People’s Bank of China from September to November 2009. It surveyed 1 644 enterprises located
in seven provinces including Zhejiang, Jiangsu, Guangdong, Shandong, Jilin, Hubei, Shaanxi and
Sichuan.
The third micro dataset used in this paper is a survey on private enterprises (PES), jointly
conducted by the All-China Federation of Industry and Commerce, Ministry of Human
Resources and Social Security and All China Federation of Trade Unions from June to September
2009. It surveyed 1 445 enterprises located in all provinces throughout the country with the
exception of Chongqing.
In recent years, particularly after 2008 when several Chinese labour related laws were
issued or updated, labour disputes have intensified. The number of labour disputes in China has
been gradually increasing over the past decade. It was 169 000 in 1999 and then increased
steadily until 2007. In 2008, the number of labour disputes increased sharply to 931 000, almost
twice the number recorded in 2007 before falling slightly to 870 000 in 2009.
Disputes can take the form of workers’ initiation of labour disputes and other collective
actions such as complaints and strikes. Other factors may also indicate employment conflicts
such as chain suicides and frequent employee turnovers. Since only officially mediated and
accepted cases of labour disputes are statistically recorded and other forms of labour disputes
can only be read as individual cases through the media, we mainly use the consistent, hopefully
representative, statistics to show the changes in labour disputes (Figure 1).
12 © OECD 2012
Figure 1. Increase in Labour Disputes Cases
0
200
400
600
800
1000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Nu
mb
er
of
Lab
or
Dis
pu
tes
Case
s
(th
ou
san
d)
Cases Accepted Cases Mediated
Source: National Bureau of Statistics, China Labor Statistical Yearbook (various years), China Statistics Press.
Figure 1 shows a significant increase of officially recorded labour disputes. The statistics
of labour dispute cases fall into two categories – the “cases accepted” and “cases mediated”. The
majority of labour dispute cases are “cases accepted” and only a small portion are “cases
mediated”. “Cases accepted” refer to labour dispute cases accepted and heard by different levels
of labour dispute arbitration institutions and “cases mediated” refer to labour dispute cases
mediated before going to institutions.
While looking into the distribution and dynamics of labour dispute cases by region, we
find that the number of labour disputes in the Eastern region is much higher than in the Central
and Western regions and is growing the fastest in the Eastern region (Figure 2). In 2008, the
number of labour dispute cases in the Eastern region grew by 98% compared to the previous
year, which was much faster than that in the Central region (50%) and in the Western region
(61%). In 2009, while the number of labour disputes cases in the Eastern region fell slightly, totals
in the Central and Western regions continued to grow.
© OECD 2012 13
Figure 2. Number of Labour Disputes Cases by Region
0
100
200
300
400
500
600
700
800
900
1000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Cases of labor disputes (thousand)
Eastern Central Western
Note: Eastern region includes Liaoning (LN), Beijing (BJ), Tianjin (TJ), Hebei (HB), Shandong (SHD), Jiangsu (JS),
Shanghai (SH), Zhejiang (ZHJ), Fujian (FJ), Guangdong (GD) and Hainan (HN); Central region includes Heilongjiang
(HLJ), Jilin (JL), Shanxi (SX), Henan (HEN), Hubei (HUB), Hunan (HUN), Anhui (ANH) and Jiangxi (JX); Western
region includes Inner Mongolia (NMG), Shaanxi (SHX), Gansu (GS), Qinghai (QH), Ningxia (NX), Xinjiang (XJ),
Chongqing (CHQ), Sichuan (SCH), Guizhou (GZH), Yunnan (YN), Tibet (XZ) and Guangxi (GX).
Source: Calculated according to data from the China Labor Statistical Yearbook.
From Figure 2, one can also observe that labour disputes cases in the Eastern region
dominate. In the period between 1999 and 2009, the proportion of labour dispute cases in the
Eastern region was between 67% (in 1999) and 76% (in 2008), whereas the Central region held a
similar proportion as in the Western region.
The Eastern domination in labour dispute cases is not only because of its larger share of
employment, but also because the labour dispute incidence in the Eastern region is higher
(Figure 3). While the labour dispute incidences in the Eastern, Central and Western regions have
all showed an increasing trend and increased significantly in 2008, the growth of labour dispute
incidence in the Eastern region in 2008 was much higher than that in the Central and Western
regions, with the incidence of 5.2, 1.5 and 2.0 per thousand workers in the Eastern region.
14 © OECD 2012
Figure 3. Labour Dispute Incidence by Region
0.00
0.10
0.20
0.30
0.40
0.50
0.60
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Labor dispute incidence (%)
Eastern Central Western
Note: Labour Dispute Incidence refers to ratio of number of labour dispute cases to urban employment.
Source: Calculated according to data from the China Labor Statistical Yearbook and the China Compendium of Statistics
1949-2008.
We can go further to examine the relationship between income level and labour dispute
incidence. By looking at labour dispute incidence by province, one can find that the more
developed provinces have the highest incidence of labour disputes (Figure 4). For example,
Tianjin, Shanghai, Beijing, Guangdong and Jiangsu, the five most developed provincial regions,
stand out significantly with the highest incidence of labour disputes, whereas in poorer inland
provinces such as Gansu, Inner Mongolia and Qinghai, labour dispute incidence was relatively
low.
© OECD 2012 15
Figure 4. Labour Dispute Incidence by Province in 2008
0.0
0.2
0.4
0.6
0.8
1.0
TJ
SH BJ
GD JS
CH
Q
SH
D
SC
H FJ
GZ
H
ZH
J
JX GX
HN
NX
HU
N XJ
HB
HU
B
LN
HE
N JL XZ
SX
AN
H
YN
SH
X
HL
J
GS
NM
G
QH
Lab
or
Dis
pute
Inci
den
ce (
%)
Source: Calculated according to data from the China Labour Statistical Yearbook and the China Compendium of Statistics
1949-2008.
We now take a step further to see how firm characteristics relate to labour dispute
incidence. When we look at labour disputes by ownership, the situations in 2007, the first half of
2008 and the first half of 2009 were very similar (Table 2). More than 20% of state-owned and
collective enterprises experienced labour disputes, which was the highest among all types of
enterprises. Foreign-funded enterprises were in second place with private enterprise, having the
lowest proportion. In the second half of 2008, 15.2% of foreign-funded enterprises experienced
labour disputes, which is slightly higher than state-owned and collective enterprises. For private
enterprises and joint ownership units, joint stock companies and limited liability corporations,
the proportions were 6.8% and 6.6%, respectively.
Table 1. Proportion of Enterprises Reporting Labour Disputes (%)
2007 The first half of
2008
The second half
of 2008
The first half
of 2009
by ownership
State-owned and
collective enterprises 23.5 20.6 14.7 25.0
Private enterprises 7.0 7.0 6.8 7.5
Foreign-funded
enterprises 13.4 14.3 15.2 13.8
Other ownerships﹡ 11.3 11.5 6.6 12.4
Total 10.9 11.0 8.2 11.8
16 © OECD 2012
by firm size
50 and below 13.3 13.7 2.1 13.7
51-100 9.1 8.3 5.6 8.7
101-200 9.3 8.0 6.0 8.6
201-400 7.5 8.1 9.3 9.0
401-1 000 13.2 14.4 12.8 14.4
Above 1 000 17.0 17.6 19.2 20.3
Total 11.1 11.1 8.4 11.8
﹡Other ownerships includes joint ownership units, joint stock companies and limited liability corporations.
Source: Calculated from MES.
By tabulating the data of PES, we found that the proportion of private enterprises which
reported labour dispute cases in the Eastern region is the highest among three regions, while that
in the Central region is in the middle and that in the Western region is the lowest.
Looking at the proportion of enterprises which reported labour disputes by firm size, we
see a U-shaped distribution (Table 1). In the three periods of time observed – namely, in 2007, the
first half of 2008 and the first half of 2009, the situations were quite similar. In the first half of
2009, for example, more than 17% of enterprises with firm size above 1 000 employees had labour
disputes in these three periods, which was the highest. Next were enterprises with firm size
between 401-1 000 and enterprises with firm size at 50 and below. However, for the second half
of 2008, only 2% of enterprises with firm size at 50 and below had labour disputes.
The PES data shows a pattern by which the larger-sized enterprises have a higher
proportion of labour dispute incidence (Table 2). In terms of the proportions of enterprises which
reported experiencing labour disputes in 2007 and in the first half of 2009, the PES data were
very similar to the corresponding proportions based on MES. However, the proportion of
enterprises which experienced labour disputes in 2008 was higher than the corresponding
proportion based on MES. According to PES, enterprises with larger firm size had a higher
proportion of labour disputes.
Table 2. Proportion of Enterprises Which Reported Labour Disputes (%)
2007 2008 The first half of 2009
50 and below 2.9 6.2 3.3
51-100 4.0 9.7 5.1
101-200 7.6 14.1 7.6
201-400 8.9 16.5 11.0
401-1 000 18.9 23.5 13.5
Above 1 000 33.0 36.8 21.2
Total 12.4 17.7 10.2
Source: Calculated from PES.
© OECD 2012 17
III. DETERMINANTS OF LABOUR DISPUTE INCIDENCE
We use a panel dataset of 31 provinces from 1999 to 2008 to analyse the determinants of
labour dispute incidence. The dataset is constructed using data from the China Labor Statistical
Yearbook, China Statistical Yearbook and the China Compendium of Statistics 1949-2008. Labour
dispute incidence is measured by the ratio of number of labour dispute cases to urban
employment. In order to examine the determinants of labour dispute incidence, the model is
constructed as below:
tiitititi uprovortgdppcpdispute ,,2,10, expln （1）
Where tipdispute , is the labour dispute incidence of province i in year t , tigdppc , is GDP per
capita of province i in year t , tiort ,exp is the proportion of export value in GDP of province i in
year t , iprov is a group of province dummy variables, ti , is randomly disturbing factors.
Dependent and independent variables in the model are listed in Table 3. The reason we
add GDP per capita in the model is that we expect more developed provinces to reach the Lewis
turning point earlier and more employment opportunities motivate people’s concern for their
interests. At the same time, people are more aware of laws and regulations on employment and
labour relations and they are more likely to be in a better position to protect their legal rights and
interests. Another hypothesis is that there are better quality employment opportunities in more
developed provinces. When employees are discontent with their employers, they tend to initiate
a labour dispute rather than to exit.
Table 3. Dependent and Independent Variables in the Model
Variable type Explanation on variables
Dependent variable
Labour dispute incidence Continuous Ratio of number of labour dispute cases to urban
employment
Independent variables
ln(gdppc) Continuous Natural log of GDP per capita
Export Continuous Proportion of export value by place of origin
in GDP
Year 2008 Dummy Year 2008=1 if year=2008;
Year 2008=0 if year=1999-2007
Province dummy variables Dummy Abbreviated
The proportion of export value in GDP reflects the density of export-oriented enterprises.
Employees in export-oriented enterprises are usually provided better wages and other welfare.
18 © OECD 2012
We expect that there will be higher labour dispute incidence in provinces with a higher
proportion of export value in GDP.
As we have seen, there was a significant increase in the number of labour dispute cases in
2008. We know that Employment Contract Law and Employment Promotion Law have been
implemented since January 1st of 2008 and Labor Disputes Mediation and Arbitration Law has been
implemented since 1 May 2008. The significant increase in the number of labour dispute cases in
2008 should be closely related to the implementation of these laws. We add year 2008 dummy
variable (year 2008=1 if year=2008; year 2008=0 if year=1999-2007) into the model to examine
whether there is a significant difference in labour dispute incidence between 2008 and previous
years. The model is reconstructed as below:
tiitititi uprovyortgdppcpdispute ,3,2,10, 2008expln （2）
The estimation results are shown in Table 4. Adjusted R2 are to some extent high in all
three models, which indicates that the models explain labour dispute incidence well. Also the
estimation results on independent variables are consistent with our expectations. In all three
models, there is significantly positive relationship between GDP per capita and labour dispute
incidence. When export and year 2008 are added into the model, the coefficients of GDP per
capita fall. This tells us that, labour dispute incidence is higher in provinces with higher GDP per
capita after controlling for other factors.
Table 4. Determinants of Labour Dispute Incidence (Fixed Effects Model)
Model (1) Model (2) Model (3)
ln(gdppc) 0.1128*** 0.0761*** 0.0272**
Export 0.0331*** 0.0355***
Year 2008 0.1098***
Province dummy variables Abbreviated Abbreviated Abbreviated
Constant term -0.9094*** -0.6066*** -0.1089
No. of observations 310 310 310
Adjusted R2 0.681 0.710 0.752
Note: (1) *** significant at 1%; ** significant at 5%; * significant at 10%;
(2) Estimation results on province dummy variables are abbreviated for simplicity.
There is also a significantly positive relationship between export and labour dispute
incidence, which indicates that regions with higher density of export-oriented enterprises have
higher labour dispute incidence. The positive coefficient of year 2008 tells us that labour dispute
incidence in 2008 is higher than previous years.
Now we can look into the determinants of “whether a worker has ever initiated a labour
dispute” by processing micro data of CULS3. Only 0.9% of urban local workers and 0.8% of
migrant workers have ever initiated a labour dispute. For urban local workers, 24% of ”last
labour disputes” happened before 2005 and three-quarters happened after 2006 (Figure 5). For
migrant workers, only 15% of ”last labour disputes” happened before 2005 and the remaining
85% happened after 2006. That is, most of “last labour disputes” happened after 2006 for both
urban local workers and migrant workers.
© OECD 2012 19
Figure 5. Years of the Last Labour Dispute a Worker Initiated
0
20
40
60
80
100
Urban local workers Migrant workers
Pro
port
ion
(%
)
Before 2005 2006 2007 2008 2009 2010
Note: Since CULS3 was conducted in the early 2010, labour disputes initiated in 2010 were very few.
Source: Calculated from CULS3.
For urban local workers, 43% declared “wage compensation” was the main reason for
initiating their last labour dispute (Table 5). For migrant workers, this proportion was 48.6%. For
urban local workers, about 17.9% declared “ending labour contract” was the main reason for
initiating their last labour dispute and 17.1% declared “working time” was the main reason for
initiating their last labour dispute. For migrant workers, about 14.8% declared “working safety”
was the main reason for initiating their last labour dispute and 34.4% declared “others” was the
main reason for initiating their last labour dispute. When we try to explore what “others” refer
to, we find that all the observations concern wage arrears.
Table 5. Major Reason for Initiating the Latest Labour Dispute
Urban local workers（%） Migrant workers（%）
Amending labour contract 3.8 0.0
Ending labour contract 17.9 0.6
Working time 17.1 0.0
Wage compensation 43.0 48.6
Working safety 7.0 14.8
Social welfare 2.6 1.7
Training opportunities 0.0 0.0
Others 8.5 34.4
Total 100 100
Source: Calculated from CULS3.
20 © OECD 2012
In what follows, we estimate a Probit model to examine the factors affecting behaviour of
initiating labour disputes for urban local workers and migrant workers. The dependent variable
is whether a worker has ever initiated a labour dispute or not (yes=1, no=0). The independent
variables include individual characteristics (gender, age and educational level) and job
characteristics (contract, ownership, sector, firm size) and city dummy variables. The model is
constructed as below:
cityfirmsize
torownershipcontracteduagefemaledispute
87
6543210 sec
Where dispute is whether a worker has ever initiated a labour dispute or not, female is
female dummy variable, age is a group of age group dummy variables, edu is a group of
educational level dummy variables, contract is labour contract dummy variable, ownership is a
group of ownership dummy variables, torsec is a group of sector dummy variables, firmsize is
a group of firm size dummy variables, city is a group of city dummy variables and is the error
term.
The variables in the model are listed in Table 6. The reason for including individual
characteristics in the model is that we expect people with higher human capital to be more aware
of laws and regulations on employment and labour relations and therefore better at protecting
their legal rights and interests. When they are discontent with their employers, they tend to
initiate a labour dispute. We include job characteristics in the model to look at the impacts of job
characteristics on labour dispute initiation.
Table 6. Explanations on Variables in the Model
Variable Variable type Explanation on variables
Dependent variable
Whether a worker has ever initiated a
labour dispute or not
Dummy Has ever initiated a labour dispute=1
Has never initiated a labour dispute=0
Independent variable
Female Dummy Female=1 Male=0
31-40 Dummy 31-40=1 16-30=0
41-50 Dummy 41-50=1 16-30=0
51-60 Dummy 51-60=1 16-30=0
Junior high school Dummy Junior high school=1
Primary school and below=0
Senior high or technical secondary
school
Dummy Senior high or technical secondary school=1
Primary school and below=0
College and above Dummy College and above=1
Primary school and below=0
Have labour contract Dummy Have labour contract=1
No labour contract=0
State-owned enterprises Dummy State-owned enterprises=1
Government agencies and institutions=0
Private enterprises Dummy Private enterprises=1
Government agencies and institutions=0
Foreign-funded enterprises or joint Dummy Foreign-funded enterprises or joint ventures=1
© OECD 2012 21
ventures Government agencies and institutions=0
Other sectors in secondary industry Dummy Other sectors in secondary industry=1
Manufacturing=0
Whole and retail trade & hotel and
catering services
Dummy Whole and retail trade & hotel and catering
services=1
Manufacturing=0
Leasing, business, personal and other
services
Dummy Leasing, business, personal and other services =1
Manufacturing=0
Other sectors in tertiary industry Dummy Other sectors in tertiary industry=1
Manufacturing=0
Firm size 2-7 Dummy Firm size 2-7=1 firm size 1=0
Firm size 8-19 Dummy Firm size 8-19=1 firm size 1=0
Firm size 20+ Dummy Firm size 20+=1 firm size 1=0
Wuhan Dummy Wuhan=1 Shanghai=0
Shenyang Dummy Shenyang Shanghai=0
Fuzhou Dummy Fuzhou Shanghai=0
Xi’an Dummy Xi’an Shanghai=0
Guangzhou Dummy Guangzhou Shanghai=0
Note: Other sectors in secondary industry refer to sectors in secondary industry except manufacturing, which include
mining and quarrying, production and supply of electricity, gas and water and construction. Other sectors in tertiary
industry refer to sectors in tertiary industry except wholesale and retail trade & hotel and catering services, leasing,
business, personal and other services, which include transport, storage, post and telecommunication services, data
transmission, computer service and software, banking, real estate, scientific research, technical services and geological
prospecting, water conservancy, environment and public utility management, education, public health, social
securities and social welfare, culture, sports and entertainment, public administration and social organisations and
international organisations.
For urban local workers and migrant workers, we estimate two models. In the first model,
we add only individual characteristics. In the second model, job characteristics are added. In
order to look at whether there is a difference in the probability of having initiated a labour
dispute between urban local workers and migrant workers, we estimate models for the pooled
sample. The models specification for the pooled sample is exactly the same as models for urban
local workers and migrant workers, except that in the models for the pooled sample, we add a
dummy variable (migrant worker=1, urban local worker=0). The estimation results are in Table 7.
22 © OECD 2012
Table 7. Estimation Results of Probit Model
Pooled sample Urban local workers Migrant workers
(1) (2) (1) (2) (1) (2)
Marginal
effects
Marginal
effects
Marginal
effects
Marginal
effects
Marginal
effects
Marginal
effects
Urban local workers
Migrant workers -0.0008 -0.0012
Male
Female -0.0016 -0.0011 -0.0033 -0.0025 -0.0009 -0.0004
16-30
31-40 -0.0018* -0.0013* -0.0042 -0.003 -0.0007 -0.0005
41-50 -0.0023* -0.0016 -0.0065 -0.0045 -0.0007 -0.0004
51-60 -0.0023** -0.0018** -0.0060** -0.0044 -0.0011 -0.0008***
Primary and below
Junior high school 0.4958*** 0.5510*** 0.7537*** 0.8020*** 0.2681*** 0.3113***
Senior high or
technical secondary
school
0.5476*** 0.6054*** 0.4998*** 0.5494*** 0.5489*** 0.6444***
College and above 0.6565*** 0.7145*** 0.5041*** 0.5617*** 0.7567*** 0.8292***
No labour contract
Have labour contract -0.0010* -0.0024 -0.0002
Government agencies
and institutions
State-owned
enterprises -0.0011 -0.0045* 0.0014
Private enterprises 0.0014 0.0038 0.0006
Foreign-funded
enterprises or joint
ventures
0.0062*** 0.0059 0.0048
Manufacturing
Other sectors in
secondary industry 0.0064 0.0012 0.0126
Whole and retail trade
& hotel and catering
services
-0.0006 -0.0049* 0.0013
Leasing, business,
personal and other
services
0.0038* 0.0000 0.0061
Other sectors in
tertiary industry 0.001 -0.0002 0.0014
Firm size 1
Firm size 2-7 -0.0009 0.0057 -0.0010*
Firm size 8-19 0.0005 0.0058 -0.0003
Firm size 20+ 0.0008 0.0037 -0.0001
City dummy variables abbreviated abbreviated abbreviated abbreviated abbreviated abbreviated
No. of observations 7 275 7 275 3 104 3 104 4 171 4 171
Pseudo R2 0.047 0.081 0.038 0.072 0.069 0.129
Note: (1) *** significant at 1%; ** significant at 5%; * significant at 10%;
(2) Estimation results on city dummy variables are abbreviated for simplicity;
(3) The robust estimation and clustering within city are used in the model to solve the problem of
possibility of correlated errors within cities.
© OECD 2012 23
The estimation results show that there is no significant difference in the probability of
having initiated a labour dispute between urban local workers and migrant workers. For the
pooled sample, there is no significant difference in the probability of having initiated a labour
dispute between females and males. The probabilities of having ever initiated a labour dispute
for older workers are lower and the probabilities of having ever initiated a labour dispute for
more educated workers are higher. Workers having a labour contract are less likely to initiate a
labour dispute. Generally, job characteristics variables do not affect whether or not a worker has
ever initiated a labour dispute.
When we look at the estimation results of urban local workers and migrant workers, we
find that the effects of the independent variables are very similar between urban local workers
and migrant workers. For both urban local workers and migrant workers, gender and age have
little effect on whether or not a worker has ever initiated a labour dispute.
For urban local workers, compared with workers with primary schooling and below,
workers with junior high school, senior high or technical secondary school and college and above
have higher probability of having ever initiated a labour dispute. Among workers with junior
high school, senior high or technical secondary school and college and above, workers with
junior high school have the highest probability of having ever initiated a labour dispute. Next is
the probability for workers with college and above, and workers with senior high or technical
secondary school have the lowest probability. For migrant workers, compared with workers with
primary and below, workers with higher educational levels have a higher probability of having
ever initiated a labour dispute.
24 © OECD 2012
IV. GOVERNMENT INITIATIVES
There have been three phases of employment policies in China. Before the mid-1990s, no
employment policies were explicitly announced. In this period, the iron-rice-bowl dominated the
urban employment pattern. That is, most urban residents at working age were guaranteed a job
by the government. At the same time, labour resources reallocation accompanied by economic
growth, especially by township and village enterprises development and non-agricultural
industry development, promoted labour mobility from rural to urban areas. Cai and Wang (1999)
break down China’s economic growth between 1978 and 1998 into contributions of capital,
labour, human capital and labour transfer, finding that labour increases contributed 24% to
China’s annual growth rate of 9.5% and labour transfers contributed 21%.
Between the late 1990s and early 2000s, Chinese employment was simultaneously hit by a
macroeconomic downtown, the Asian financial crisis, and the system reform of breaking the
iron-rice-bowl in employment. To tackle severe unemployment and lay-offs, the Chinese
government began to implement proactive employment policies. Since then, these policies have
effectively helped urban workers to achieve reemployment, diversified employment structure,
kept overall employment growth, and promoted labour migration (Cai and Wang, 2010).
Since 2003, with the coming of the Lewis Turning Point, a series of new policies aimed at
promoting the establishment of labour market institutions have been implemented, though they
are far from completed. The following section describes the evolution of proactive government
employment policies and collective bargaining system for wages and collective contract system.
IV.1 Government Proactive Employment Policies
To address the severe unemployment situation in the late 1990s, the government
implemented a series of policies and took many measures, aimed at easing up labour market
pressure and involving different stakeholders, including the governments at various levels,
communities, enterprises and labourers. The focus of these policy measures can be summarised
as: i) the macroeconomic policy that aims to boost employment through sustained economic
growth; ii) the support policy that focuses on promoting the reemployment of laid-off and
unemployed workers; iii) the labour market policy that aims to realise the rational matching
between labour force and employment needs; iv) the macro regulation policy that aims to reduce
unemployment; and v) the social security policy that aims to effectively assure the basic standard
of living for laid-off and unemployed workers and actively promote their reemployment.
Under the framework of a proactive employment policy, the central and local
governments have played an important role in assisting the unemployed to get reemployed
through tax exemptions, fiscal inputs, micro finance, social security subsidies, employment
© OECD 2012 25
assistance, and even creation of community jobs. In addition, the governments have also made
efforts to encourage the development of non-public service, service sector, informal sectors, and
small and medium-sized enterprises, which were deemed and in fact served as momentous
absorbers of employment. By using various effective policy measures to expand employment, the
government gradually formulated and implemented the principle of giving priority to
employment.
The policies aimed at promoting employment after the financial crisis in 2008 are good
examples of the Chinese government’s proactive employment policies. In order to reduce
employment losses brought on by the financial crisis, the Chinese government has taken a series
of active labour market policies. In 2008, apart from initiating a massive fiscal stimulus package
to maintain economic growth, the Chinese government specifically put forward some measures
to help both employers and employees to maintain jobs.
Those measures include: i) assistance to small and medium-sized enterprises by loosing
market access, diversifying financing channels and allowing enterprises with operational
difficulties to delay contributions to social security programmes; ii) assistance to vulnerable
labour market participants – namely, migrant workers, older urban workers, and new graduates,
by providing public services such as job intermediation and training; iii) encouraging enterprises
to keep workers’ jobs by adopting less restrictive employment, flexible working times and on-
the-job training to stabilise employment posts; iv) giving favourable tax/fee/loan policies and
other policies on business registration and information consultation to migrants who return
home to start their own business; and v) guaranteeing social protection assistance such as
unemployment insurance and minimum living standard programmes.
Thanks to the implementation of proactive policies, the employment situation has rapidly
improved. The urban registered unemployment rate reached its peak at 4.3% in the four quarters
of 2009 and fell afterwards. Most returned migrant workers have returned to cities to work due
to factors related to the financial crisis before 2008 Spring Festival. With the recovery of the
Chinese economy from the crisis, the labour shortage reflecting the arrival of the Lewis Turning
Point has reappeared and the labour market has since tightened, as shown in Figure 6 on the
relationship between labour supply and demand in public job service.
26 © OECD 2012
Figure 6. Changing Labour Market Situation
0.5
0.6
0.7
0.8
0.9
1.0
1.1
2001.1
2001.3
2002.1
2002.3
2003.1
2003.3
2004.1
2004.3
2005.1
2005.3
2006.1
2006.3
2007.1
2007.3
2008.1
2008.3
2009.1
2009.3
2010.1
2010.3
2011.1
Rati
o o
f v
acan
cy
to
jo
b s
eek
ers
Source: downloaded from the website of Ministry of Human Resources and Social Security of the People’s Republic of
China: http://w1.mohrss.gov.cn/gb/zwxx/ghytj.htm.
IV.2 Collective Bargaining System and Collective Contract System
The collective bargaining system for wages and the collective contract system have been
mapped out as important elements of labour market reform. A series of laws and regulations
have provided the policy basis for developing these systems. There were regulations on
collective contracts in the Labor Law of 1994. Since then, labour departments at different levels
have started to pilot collective contract systems. Based on pilot programmes in more than
800 enterprises in eight provinces such as Beijing, Guangdong and Fujian in 1995, the Ministry of
Labour issued Several Opinions on Collective Bargaining for Wages in Foreign-funded Enterprises in
1997, which guides foreign-funded enterprises to carry out collective bargaining for wages.
Since then more regulations on a collective bargaining system for wages and a collective
contract system have been issued, such as the Guidelines on Trade Unions Participating in Collective
Bargaining for Wages in 1998, Trial Procedures for Collective Bargaining System for Wages in 2000,
revised Traded Unions Law and Notice on Further Implementing Equal Consultation and Collective
Contract System in 2001. By 2002 a three-party mechanism for the co-ordination of labour
relations was established in thirty provinces at provincial level. By 2003, more than 290 000
enterprises had a collective bargaining system for wages.
In 2004 Regulations on Collective Contracts further regulated collective bargaining and
collective contract signing. In 2005, the Notice on Further Promoting Collective Bargaining System for
Wages was put forward so that trade unions could represent workers to negotiate with
enterprises to sign collective contracts in foreign-funded enterprises, private enterprises,
township and village enterprises and in designated regions where small enterprises are relatively
concentrated. By 2005, tripartite mechanisms for the co-ordination of labour relations were
© OECD 2012 27
established in cities at prefecture level and above, more than 6 600 tripartite coordination
organisations were set up and collective bargaining system for wages was established in more
than 340 000 enterprises. Tripartite co-ordination organisations reached 8 030 and 10 702 in 2006
and 2007.
In 2008, the Contract Law gave more detailed regulations on collective contracts. Collective
bargaining system for wages was mentioned by Premier Wen Jiabao in a government work
report for the first session of the 11th National People’s Congress. This was the first time that a
collective bargaining system for wages was written into a government work report, highlighting
the importance of this system under the new labour market situation. In 2008 and 2009, the All
China Federation of Trade Unions issued several documents on collective bargaining system for
wages.
The year 2008 also saw the introduction of the “Rainbow Project” by the Ministry of
Human Resources and Social Security. The purpose of this project is to promote a collective
bargaining system for wages and a collective contract system comprehensively. In May 2010 the
Deeply Promoting Collective Contract System and Implementing Rainbow Project stated that the
collective contract system should be implemented in various kinds of enterprises which have
established trade unions in three years (2010-2012). The coverage rate of collective contract
system should reach 60% and 80% in 2010 and 2011. The coverage rate should be improved by
signing regional and industrial collective contracts in enterprises which have not yet established
trade unions.
IV.3 Statistics on Trade Union and Collective Contract System
The National Conference on Grassroot Trade Unions Establishment, held in 2010,
motivated enterprises to establish trade unions and to implement collective bargaining for
wages. The goal raised by the Conference was that more than 60% of legal entities of enterprises
should establish trade unions by 2010. In 2011 and 2012, this proportion is expected to reach 75%
and 90%. A related goal is that 82% of staff and workers should become members of trade unions
in 2010. In 2011 and 2012, this proportion is required to reach 87% and 92%.
The number of grassroot trade unions remained stable in the first half of 1990s and there
was a slight decrease at the end of the 1990s, followed by a huge jump in the early 2000s. This
number has been growing steadily since 2003 and reached 1 845 million in 2009. The number of
members in grassroot trade unions has followed a similar pattern of growth; i.e. after the
stagnation in the 1990s and sudden jump in the early 2000s, it has been growing rapidly and
reached 226 million in 2009 (Figure 7).
28 © OECD 2012
Figure 7. Number of Grassroot Trade Unions and Number of Their Members
0
40
80
120
160
200
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Nu
mb
er
of
Gra
ssro
ot
Tra
de U
nio
ns
(te
n t
ho
usa
nd
)
0.0
0.5
1.0
1.5
2.0
2.5
Nu
mb
er
of
Mem
bers
in
Gra
ssro
ot
Tra
de U
nio
ns
(hu
nd
red
mil
lio
n)
Numbers of Grassroot Trade
Unions
Number of Members in
Grassroot Trade Unions
Note: Statistics on grassroot trade unions since 2003 has been adjusted.
Source: National Bureau of Statistics, China Statistical Yearbook (2010), China Statistics Press.
With the development of a collective bargaining system for wages and a collective
contract system, the number of collective contracts and number of employees covered by
collective contracts has been increasing (Figure 8). The number of collective contracts was 150 000
and the number of employees covered by collective contracts was 50 million in 1998. In 2001 the
number of collective contracts increased to 270 000 and the number of employees covered by
collective contracts increased to more than 70 million. There was a significant increase in the
number of collective contracts in 2002 and it reached 635 000 and the number of employees
covered by collective contracts reached more than 80 million. In 2009, the number of collective
contracts increased to 703 000, covering more than 94 million employees.
© OECD 2012 29
Figure 8. Number of Collective Contracts and Number of Employees Covered
0
20
40
60
80
1998 1999 2000 2001 2002 2009
Num
ber
of
Collec
tive
Contr
acts
(te
n thousa
nd)
0
2000
4000
6000
8000
10000
Num
ber
of
Em
plo
yee
s C
over
ed
(ten
thousa
nd)
Number of Collective Contracts
Number of Employees Covered
Source: Ministry of Human Resources and Social Security, Statistical Reports on Human Resources and Social
Security Development (various years), http://www.mohrss.gov.cn/.
According to PES, 83% of enterprises have established trade unions, 45.1% have
established a collective bargaining system for wages and 68.5% have established a staff and
workers congress system (Table 10). The proportions of enterprises establishing trade unions,
collective bargaining systems for wages and staff and workers congress systems in the Eastern
region were the highest among three regions, those in the Central region were in the middle and
those in the Western region were the lowest.
Table 8. Proportion of Enterprises with Trade Union, Collective Bargaining System and Staff
and Workers Congress System (%)
Trade union Collective bargaining
system for wages
Staff and workers
congress system
Eastern region 88.5 50.8 72.0
Central region 83.0 45.3 68.7
Western region 79.4 41.2 66.0
Total 83.0 45.1 68.5
Source: Calculated from PES.
The impacts of collective bargaining systems for wages and collective contract systems
can be examined through some case studies. According to a survey conducted by Zhangjiakou
Municipal Trade Union, wage growth has been achieved in most enterprises which have
established a collective bargaining system for wages. A total of 59% of enterprises have attained
a wage growth of 5 to 10% and 4.6% of enterprises have attained a wage growth of 10 to 20%
30 © OECD 2012
while 1.4% of enterprises have attained a wage growth of 20 to 30% and 33% of enterprises have
not attained any wage growth (Wang, 2010a).
At the Nanhai Honda Corporation located in Guangdong Province, through a collective
bargaining system, an agreement between the Corporation and workers has been reached2.
Before the agreement was reached, the monthly turnover rate was 4.9%. It fell to a much lower
1.2% after the agreement was reached. The average wages of front-line workers will increase
from 1 921 yuan to 2 532 yuan. Professional and technical personnel will get a subsidy and the
basic wage starting point of workers with three years’ job experience will be adjusted.
2. Downloaded from http://business.sohu.com/20110627/n311741722.shtml.
© OECD 2012 31
V. CONCLUSIONS AND POLICY SUGGESTIONS
China is currently experiencing a transformation of labour market development. During
most of the reform period that began in the early 1980s, the main task of labour market
development was to make market forces the fundamental mechanisms for allocating the labour
force and the basis of wage determination. However, the passage of the Lewis Turning Point has
made the building of labour market institutions an urgent task.
To demonstrate its concern for social harmony, the Chinese government has embarked on
building a social security system, with some success in recent years. For example, in the 12th Five-
Year Plan approved by the National People’s Congress in March 2011, the coverage rates of
urban pension and of health care were made compulsory objectives for the next five years.
However, the building of labour market institutions has not been concretely scheduled in the
plan.
Although labour market circumstances have been moving towards favouring ordinary
workers as the Lewis Turning Point has been reached, the increase in wages caused by the tight
labour market is insufficient to allow workers to share the benefits of enhanced labour
productivity and thus to reduce the income inequality among Chinese residents; i.e. the wage
setting mechanism solely based on the relationship between demand for and supply of labour
cannot determine a sound sharing of the outcomes between employers and employees.
Therefore, there emerges a strong impetus to develop labour market institutions to maintain and
improve social cohesion.
Although this paper confirms that increased labour disputes are not a result of
deteriorated labour relations, the lack of mechanisms for solving disputes can cause social
tension, because an arbitrary setting may neither solve the conflict nor benefit employees or
employers. A lesson can be learnt from Korea. When Korea arrived at its turning point around
1970, the role of trade unions was still strictly restricted by the government and workers did not
feel satisfied with their wages and working conditions. The consequence was not only a slower
improvement of income distribution, comparable to Japan’s similar stage of development, but
also a disastrous political cost – namely, more than a decade – long collapse of social cohesion
(see Freeman, 1993).
We propose three key areas of labour market institutions building. First, labour relations
legislation and effective enforcement of labour-related laws are critical for building harmonious
labour relations. In spite of conflicting opinions about Employment Contract Law issued in 2008,
the law has indeed enlightened workers’ consciousness of interests and rights and in fact urged
various levels of government to protect both urban resident workers and migrant workers.
32 © OECD 2012
Second, the collective bargaining system for wages is relatively weak in China while it is
urgently needed. As there are no perfectly identical trade unions in any two countries, the trade
union regime in China can be instrumental as a willing party in collective bargaining. The
current task is to expand its coverage in various types of firms and enterprises and structure its
way of working.
Lastly, as the Lewis Turning Point has arrived, it is an appropriate time to reorient the
developmental state type function of the Chinese governments, both central and local, from
emphasising efforts to promote economic growth towards focusing on social protections.
© OECD 2012 33
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34 © OECD 2012
OTHER TITLES IN THE SERIES/
AUTRES TITRES DANS LA SÉRIE
The former series known as “Technical Papers” and “Webdocs” merged in November 2003
into “Development Centre Working Papers”. In the new series, former Webdocs 1-17 follow
former Technical Papers 1-212 as Working Papers 213-229.
All these documents may be downloaded from:
http://www.oecd.org/dev/wp or obtained via e-mail ([email protected]).
Working Paper No.1, Macroeconomic Adjustment and Income Distribution: A Macro-Micro Simulation Model, by François Bourguignon,
William H. Branson and Jaime de Melo, March 1989.
Working Paper No. 2, International Interactions in Food and Agricultural Policies: The Effect of Alternative Policies, by Joachim Zietz and
Alberto Valdés, April, 1989.
Working Paper No. 3, The Impact of Budget Retrenchment on Income Distribution in Indonesia: A Social Accounting Matrix Application, by
Steven Keuning and Erik Thorbecke, June 1989.
Working Paper No. 3a, Statistical Annex: The Impact of Budget Retrenchment, June 1989.
Document de travail No. 4, Le Rééquilibrage entre le secteur public et le secteur privé : le cas du Mexique, par C.-A. Michalet, juin 1989.
Working Paper No. 5, Rebalancing the Public and Private Sectors: The Case of Malaysia, by R. Leeds, July 1989.
Working Paper No. 6, Efficiency, Welfare Effects and Political Feasibility of Alternative Antipoverty and Adjustment Programs, by Alain de
Janvry and Elisabeth Sadoulet, December 1989.
Document de travail No. 7, Ajustement et distribution des revenus : application d’un modèle macro-micro au Maroc, par Christian Morrisson,
avec la collabouration de Sylvie Lambert et Akiko Suwa, décembre 1989.
Working Paper No. 8, Emerging Maize Biotechnologies and their Potential Impact, by W. Burt Sundquist, December 1989.
Document de travail No. 9, Analyse des variables socio-culturelles et de l’ajustement en Côte d’Ivoire, par W. Weekes-Vagliani, janvier 1990.
Working Paper No. 10, A Financial CompuTable General Equilibrium Model for the Analysis of Ecuador’s Stabilization Programs, by André
Fargeix and Elisabeth Sadoulet, February 1990.
Working Paper No. 11, Macroeconomic Aspects, Foreign Flows and Domestic Savings Performance in Developing Countries: A ”State of The
Art” Report, by Anand Chandavarkar, February 1990.
Working Paper No. 12, Tax Revenue Implications of the Real Exchange Rate: Econometric Evidence from Korea and Mexico, by Viriginia
Fierro and Helmut Reisen, February 1990.
Working Paper No. 13, Agricultural Growth and Economic Development: The Case of Pakistan, by Naved Hamid and Wouter Tims,
April 1990.
Working Paper No. 14, Rebalancing the Public and Private Sectors in Developing Countries: The Case of Ghana, by H. Akuoko-Frimpong,
June 1990.
Working Paper No. 15, Agriculture and the Economic Cycle: An Economic and Econometric Analysis with Special Reference to Brazil, by
Florence Contré and Ian Goldin, June 1990.
Working Paper No. 16, Comparative Advantage: Theory and Application to Developing Country Agriculture, by Ian Goldin, June 1990.
Working Paper No. 17, Biotechnology and Developing Country Agriculture: Maize in Brazil, by Bernardo Sorj and John Wilkinson,
June 1990.
Working Paper No. 18, Economic Policies and Sectoral Growth: Argentina 1913-1984, by Yair Mundlak, Domingo Cavallo, Roberto
Domenech, June 1990.
Working Paper No. 19, Biotechnology and Developing Country Agriculture: Maize In Mexico, by Jaime A. Matus Gardea, Arturo Puente
Gonzalez and Cristina Lopez Peralta, June 1990.
Working Paper No. 20, Biotechnology and Developing Country Agriculture: Maize in Thailand, by Suthad Setboonsarng, July 1990.
Working Paper No. 21, International Comparisons of Efficiency in Agricultural Production, by Guillermo Flichmann, July 1990.
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Working Paper No. 22, Unemployment in Developing Countries: New Light on an Old Problem, by David Turnham and Denizhan Eröcal,
July 1990.
Working Paper No. 23, Optimal Currency Composition of Foreign Debt: the Case of Five Developing Countries, by Pier Giorgio Gawronski,
August 1990.
Working Paper No. 24, From Globalization to Regionalization: the Mexican Case, by Wilson Peres Núñez, August 1990.
Working Paper No. 25, Electronics and Development in Venezuela: A User-Oriented Strategy and its Policy Implications, by Carlota Perez,
October 1990.
Working Paper No. 26, The Legal Protection of Software: Implications for Latecomer Strategies in Newly Industrialising Economies (NIEs) and
Middle-Income Economies (MIEs), by Carlos Maria Correa, October 1990.
Working Paper No. 27, Specialization, Technical Change and Competitiveness in the Brazilian Electronics Industry, by Claudio R. Frischtak,
October 1990.
Working Paper No. 28, Internationalization Strategies of Japanese Electronics Companies: Implications for Asian Newly Industrializing
Economies (NIEs), by Bundo Yamada, October 1990.
Working Paper No. 29, The Status and an Evaluation of the Electronics Industry in Taiwan, by Gee San, October 1990.
Working Paper No. 30, The Indian Electronics Industry: Current Status, Perspectives and Policy Options, by Ghayur Alam, October 1990.
Working Paper No. 31, Comparative Advantage in Agriculture in Ghana, by James Pickett and E. Shaeeldin, October 1990.
Working Paper No. 32, Debt Overhang, Liquidity Constraints and Adjustment Incentives, by Bert Hofman and Helmut Reisen,
October 1990.
Working Paper No. 34, Biotechnology and Developing Country Agriculture: Maize in Indonesia, by Hidjat Nataatmadja et al., January 1991.
Working Paper No. 35, Changing Comparative Advantage in Thai Agriculture, by Ammar Siamwalla, Suthad Setboonsarng and Prasong
Werakarnjanapongs, March 1991.
Working Paper No. 36, Capital Flows and the External Financing of Turkey’s Imports, by Ziya Önis and Süleyman Özmucur, July 1991.
Working Paper No. 37, The External Financing of Indonesia’s Imports, by Glenn P. Jenkins and Henry B.F. Lim, July 1991.
Working Paper No. 38, Long-term Capital Reflow under Macroeconomic Stabilization in Latin America, by Beatriz Armendariz de Aghion,
July 1991.
Working Paper No. 39, Buybacks of LDC Debt and the Scope for Forgiveness, by Beatriz Armendariz de Aghion, July 1991.
Working Paper No. 40, Measuring and Modelling Non-Tariff Distortions with Special Reference to Trade in Agricultural Commodities, by
Peter J. Lloyd, July 1991.
Working Paper No. 41, The Changing Nature of IMF Conditionality, by Jacques J. Polak, August 1991.
Working Paper No. 42, Time-Varying Estimates on the Openness of the Capital Account in Korea and Taiwan, by Helmut Reisen and Hélène
Yèches, August 1991.
Working Paper No. 43, Toward a Concept of Development Agreements, by F. Gerard Adams, August 1991.
Document de travail No. 44, Le Partage du fardeau entre les créanciers de pays débiteurs défaillants, par Jean-Claude Berthélemy et Ann
Vourc’h, septembre 1991.
Working Paper No. 45, The External Financing of Thailand’s Imports, by Supote Chunanunthathum, October 1991.
Working Paper No. 46, The External Financing of Brazilian Imports, by Enrico Colombatto, with Elisa Luciano, Luca Gargiulo, Pietro
Garibaldi and Giuseppe Russo, October 1991.
Working Paper No. 47, Scenarios for the World Trading System and their Implications for Developing Countries, by Robert Z. Lawrence,
November 1991.
Working Paper No. 48, Trade Policies in a Global Context: Technical Specifications of the Rural/Urban-North/South (RUNS) Applied General
Equilibrium Model, by Jean-Marc Burniaux and Dominique van der Mensbrugghe, November 1991.
Working Paper No. 49, Macro-Micro Linkages: Structural Adjustment and Fertilizer Policy in Sub-Saharan Africa, by Jean-Marc Fontaine
with the collabouration of Alice Sindzingre, December 1991.
Working Paper No. 50, Aggregation by Industry in General Equilibrium Models with International Trade, by Peter J. Lloyd, December 1991.
Working Paper No. 51, Policy and Entrepreneurial Responses to the Montreal Protocol: Some Evidence from the Dynamic Asian Economies, by
David C. O’Connor, December 1991.
Working Paper No. 52, On the Pricing of LDC Debt: an Analysis Based on Historical Evidence from Latin America, by Beatriz Armendariz
de Aghion, February 1992.
Working Paper No. 53, Economic Regionalisation and Intra-Industry Trade: Pacific-Asian Perspectives, by Kiichiro Fukasaku,
February 1992.
Working Paper No. 54, Debt Conversions in Yugoslavia, by Mojmir Mrak, February 1992.
Working Paper No. 55, Evaluation of Nigeria’s Debt-Relief Experience (1985-1990), by N.E. Ogbe, March 1992.
Document de travail No. 56, L’Expérience de l’allégement de la dette du Mali, par Jean-Claude Berthélemy, février 1992.
Working Paper No. 57, Conflict or Indifference: US Multinationals in a World of Regional Trading Blocs, by Louis T. Wells, Jr., March 1992.
Working Paper No. 58, Japan’s Rapidly Emerging Strategy Toward Asia, by Edward J. Lincoln, April 1992.
Working Paper No. 59, The Political Economy of Stabilization Programmes in Developing Countries, by Bruno S. Frey and Reiner
Eichenberger, April 1992.
Working Paper No. 60, Some Implications of Europe 1992 for Developing Countries, by Sheila Page, April 1992.
36 © OECD 2012
Working Paper No. 61, Taiwanese Corporations in Globalisation and Regionalisation, by Gee San, April 1992.
Working Paper No. 62, Lessons from the Family Planning Experience for Community-Based Environmental Education, by Winifred
Weekes-Vagliani, April 1992.
Working Paper No. 63, Mexican Agriculture in the Free Trade Agreement: Transition Problems in Economic Reform, by Santiago Levy and
Sweder van Wijnbergen, May 1992.
Working Paper No. 64, Offensive and Defensive Responses by European Multinationals to a World of Trade Blocs, by John M. Stopford,
May 1992.
Working Paper No. 65, Economic Integration in the Pacific Region, by Richard Drobnick, May 1992.
Working Paper No. 66, Latin America in a Changing Global Environment, by Winston Fritsch, May 1992.
Working Paper No. 67, An Assessment of the Brady Plan Agreements, by Jean-Claude Berthélemy and Robert Lensink, May 1992.
Working Paper No. 68, The Impact of Economic Reform on the Performance of the Seed Sector in Eastern and Southern Africa, by Elizabeth
Cromwell, June 1992.
Working Paper No. 69, Impact of Structural Adjustment and Adoption of Technology on Competitiveness of Major Cocoa Producing Countries,
by Emily M. Bloomfield and R. Antony Lass, June 1992.
Working Paper No. 70, Structural Adjustment and Moroccan Agriculture: an Assessment of the Reforms in the Sugar and Cereal Sectors, by
Jonathan Kydd and Sophie Thoyer, June 1992.
Document de travail No. 71, L’Allégement de la dette au Club de Paris : les évolutions récentes en perspective, par Ann Vourc’h, juin 1992.
Working Paper No. 72, Biotechnology and the Changing Public/Private Sector Balance: Developments in Rice and Cocoa, by Carliene Brenner,
July 1992.
Working Paper No. 73, Namibian Agriculture: Policies and Prospects, by Walter Elkan, Peter Amutenya, Jochbeth Andima, Robin
Sherbourne and Eline van der Linden, July 1992.
Working Paper No. 74, Agriculture and the Policy Environment: Zambia and Zimbabwe, by Doris J. Jansen and Andrew Rukovo,
July 1992.
Working Paper No. 75, Agricultural Productivity and Economic Policies: Concepts and Measurements, by Yair Mundlak, August 1992.
Working Paper No. 76, Structural Adjustment and the Institutional Dimensions of Agricultural Research and Development in Brazil: Soybeans,
Wheat and Sugar Cane, by John Wilkinson and Bernardo Sorj, August 1992.
Working Paper No. 77, The Impact of Laws and Regulations on Micro and Small Enterprises in Niger and Swaziland, by Isabelle Joumard,
Carl Liedholm and Donald Mead, September 1992.
Working Paper No. 78, Co-Financing Transactions between Multilateral Institutions and International Banks, by Michel Bouchet and Amit
Ghose, October 1992.
Document de travail No. 79, Allégement de la dette et croissance : le cas mexicain, par Jean-Claude Berthélemy et Ann Vourc’h,
octobre 1992.
Document de travail No. 80, Le Secteur informel en Tunisie : cadre réglementaire et pratique courante, par Abderrahman Ben Zakour et
Farouk Kria, novembre 1992.
Working Paper No. 81, Small-Scale Industries and Institutional Framework in Thailand, by Naruemol Bunjongjit and Xavier Oudin,
November 1992.
Working Paper No. 81a, Statistical Annex: Small-Scale Industries and Institutional Framework in Thailand, by Naruemol Bunjongjit and
Xavier Oudin, November 1992.
Document de travail No. 82, L’Expérience de l’allégement de la dette du Niger, par Ann Vourc’h et Maina Boukar Moussa, novembre 1992.
Working Paper No. 83, Stabilization and Structural Adjustment in Indonesia: an Intertemporal General Equilibrium Analysis, by David
Roland-Holst, November 1992.
Working Paper No. 84, Striving for International Competitiveness: Lessons from Electronics for Developing Countries, by Jan Maarten de Vet,
March 1993.
Document de travail No. 85, Micro-entreprises et cadre institutionnel en Algérie, par Hocine Benissad, mars 1993.
Working Paper No. 86, Informal Sector and Regulations in Ecuador and Jamaica, by Emilio Klein and Victor E. Tokman, August 1993.
Working Paper No. 87, Alternative Explanations of the Trade-Output Correlation in the East Asian Economies, by Colin I. Bradford Jr. and
Naomi Chakwin, August 1993.
Document de travail No. 88, La Faisabilité politique de l’ajustement dans les pays africains, par Christian Morrisson, Jean-Dominique Lafay
et Sébastien Dessus, novembre 1993.
Working Paper No. 89, China as a Leading Pacific Economy, by Kiichiro Fukasaku and Mingyuan Wu, November 1993.
Working Paper No. 90, A Detailed Input-Output Table for Morocco, 1990, by Maurizio Bussolo and David Roland-Holst November 1993.
Working Paper No. 91, International Trade and the Transfer of Environmental Costs and Benefits, by Hiro Lee and David Roland-Holst,
December 1993.
Working Paper No. 92, Economic Instruments in Environmental Policy: Lessons from the OECD Experience and their Relevance to Developing
Economies, by Jean-Philippe Barde, January 1994.
Working Paper No. 93, What Can Developing Countries Learn from OECD Labour Market Programmes and Policies?, by Åsa Sohlman with
David Turnham, January 1994.
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Working Paper No. 94, Trade Liberalization and Employment Linkages in the Pacific Basin, by Hiro Lee and David Roland-Holst,
February 1994.
Working Paper No. 95, Participatory Development and Gender: Articulating Concepts and Cases, by Winifred Weekes-Vagliani,
February 1994.
Document de travail No. 96, Promouvoir la maîtrise locale et régionale du développement : une démarche participative à Madagascar, par
Philippe de Rham et Bernard Lecomte, juin 1994.
Working Paper No. 97, The OECD Green Model: an Updated Overview, by Hiro Lee, Joaquim Oliveira-Martins and Dominique van der
Mensbrugghe, August 1994.
Working Paper No. 98, Pension Funds, Capital Controls and Macroeconomic Stability, by Helmut Reisen and John Williamson,
August 1994.
Working Paper No. 99, Trade and Pollution Linkages: Piecemeal Reform and Optimal Intervention, by John Beghin, David Roland-Holst
and Dominique van der Mensbrugghe, October 1994.
Working Paper No. 100, International Initiatives in Biotechnology for Developing Country Agriculture: Promises and Problems, by Carliene
Brenner and John Komen, October 1994.
Working Paper No. 101, Input-based Pollution Estimates for Environmental Assessment in Developing Countries, by Sébastien Dessus,
David Roland-Holst and Dominique van der Mensbrugghe, October 1994.
Working Paper No. 102, Transitional Problems from Reform to Growth: Safety Nets and Financial Efficiency in the Adjusting Egyptian
Economy, by Mahmoud Abdel-Fadil, December 1994.
Working Paper No. 103, Biotechnology and Sustainable Agriculture: Lessons from India, by Ghayur Alam, December 1994.
Working Paper No. 104, Crop Biotechnology and Sustainability: a Case Study of Colombia, by Luis R. Sanint, January 1995.
Working Paper No. 105, Biotechnology and Sustainable Agriculture: the Case of Mexico, by José Luis Solleiro Rebolledo, January 1995.
Working Paper No. 106, Empirical Specifications for a General Equilibrium Analysis of Labour Market Policies and Adjustments, by Andréa
Maechler and David Roland-Holst, May 1995.
Document de travail No. 107, Les Migrants, partenaires de la coopération internationale : le cas des Maliens de France, par Christophe Daum,
juillet 1995.
Document de travail No. 108, Ouverture et croissance industrielle en Chine : étude empirique sur un échantillon de villes, par Sylvie
Démurger, septembre 1995.
Working Paper No. 109, Biotechnology and Sustainable Crop Production in Zimbabwe, by John J. Woodend, December 1995.
Document de travail No. 110, Politiques de l’environnement et libéralisation des échanges au Costa Rica : une vue d’ensemble, par Sébastien
Dessus et Maurizio Bussolo, février 1996.
Working Paper No. 111, Grow Now/Clean Later, or the Pursuit of Sustainable Development?, by David O’Connor, March 1996.
Working Paper No. 112, Economic Transition and Trade-Policy Reform: Lessons from China, by Kiichiro Fukasaku and Henri-Bernard
Solignac Lecomte, July 1996.
Working Paper No. 113, Chinese Outward Investment in Hong Kong: Trends, Prospects and Policy Implications, by Yun-Wing Sung,
July 1996.
Working Paper No. 114, Vertical Intra-industry Trade between China and OECD Countries, by Lisbeth Hellvin, July 1996.
Document de travail No. 115, Le Rôle du capital public dans la croissance des pays en développement au cours des années 80, par Sébastien
Dessus et Rémy Herrera, juillet 1996.
Working Paper No. 116, General Equilibrium Modelling of Trade and the Environment, by John Beghin, Sébastien Dessus, David Roland-
Holst and Dominique van der Mensbrugghe, September 1996.
Working Paper No. 117, Labour Market Aspects of State Enterprise Reform in Viet Nam, by David O’Connor, September 1996.
Document de travail No. 118, Croissance et compétitivité de l’industrie manufacturière au Sénégal, par Thierry Latreille et Aristomène
Varoudakis, octobre 1996.
Working Paper No. 119, Evidence on Trade and Wages in the Developing World, by Donald J. Robbins, December 1996.
Working Paper No. 120, Liberalising Foreign Investments by Pension Funds: Positive and Normative Aspects, by Helmut Reisen,
January 1997.
Document de travail No. 121, Capital Humain, ouverture extérieure et croissance : estimation sur données de panel d’un modèle à coefficients
variables, par Jean-Claude Berthélemy, Sébastien Dessus et Aristomène Varoudakis, janvier 1997.
Working Paper No. 122, Corruption: The Issues, by Andrew W. Goudie and David Stasavage, January 1997.
Working Paper No. 123, Outflows of Capital from China, by David Wall, March 1997.
Working Paper No. 124, Emerging Market Risk and Sovereign Credit Ratings, by Guillermo Larraín, Helmut Reisen and Julia von
Maltzan, April 1997.
Working Paper No. 125, Urban Credit Co-operatives in China, by Eric Girardin and Xie Ping, August 1997.
Working Paper No. 126, Fiscal Alternatives of Moving from Unfunded to Funded Pensions, by Robert Holzmann, August 1997.
Working Paper No. 127, Trade Strategies for the Southern Mediterranean, by Peter A. Petri, December 1997.
Working Paper No. 128, The Case of Missing Foreign Investment in the Southern Mediterranean, by Peter A. Petri, December 1997.
Working Paper No. 129, Economic Reform in Egypt in a Changing Global Economy, by Joseph Licari, December 1997.
38 © OECD 2012
Working Paper No. 130, Do Funded Pensions Contribute to Higher Aggregate Savings? A Cross-Country Analysis, by Jeanine Bailliu and
Helmut Reisen, December 1997.
Working Paper No. 131, Long-run Growth Trends and Convergence Across Indian States, by Rayaprolu Nagaraj, Aristomène Varoudakis
and Marie-Ange Véganzonès, January 1998.
Working Paper No. 132, Sustainable and Excessive Current Account Deficits, by Helmut Reisen, February 1998.
Working Paper No. 133, Intellectual Property Rights and Technology Transfer in Developing Country Agriculture: Rhetoric and Reality, by
Carliene Brenner, March 1998.
Working Paper No. 134, Exchange-rate Management and Manufactured Exports in Sub-Saharan Africa, by Khalid Sekkat and Aristomène
Varoudakis, March 1998.
Working Paper No. 135, Trade Integration with Europe, Export Diversification and Economic Growth in Egypt, by Sébastien Dessus and
Akiko Suwa-Eisenmann, June 1998.
Working Paper No. 136, Domestic Causes of Currency Crises: Policy Lessons for Crisis Avoidance, by Helmut Reisen, June 1998.
Working Paper No. 137, A Simulation Model of Global Pension Investment, by Landis MacKellar and Helmut Reisen, August 1998.
Working Paper No. 138, Determinants of Customs Fraud and Corruption: Evidence from Two African Countries, by David Stasavage and
Cécile Daubrée, August 1998.
Working Paper No. 139, State Infrastructure and Productive Performance in Indian Manufacturing, by Arup Mitra, Aristomène Varoudakis
and Marie-Ange Véganzonès, August 1998.
Working Paper No. 140, Rural Industrial Development in Viet Nam and China: A Study in Contrasts, by David O’Connor, September 1998.
Working Paper No. 141,Labour Market Aspects of State Enterprise Reform in China, by Fan Gang,Maria Rosa Lunati and David
O’Connor, October 1998.
Working Paper No. 142, Fighting Extreme Poverty in Brazil: The Influence of Citizens’ Action on Government Policies, by Fernanda Lopes
de Carvalho, November 1998.
Working Paper No. 143, How Bad Governance Impedes Poverty Alleviation in Bangladesh, by Rehman Sobhan, November 1998.
Document de travail No. 144, La libéralisation de l’agriculture tunisienne et l’Union européenne: une vue prospective, par Mohamed
Abdelbasset Chemingui et Sébastien Dessus, février 1999.
Working Paper No. 145, Economic Policy Reform and Growth Prospects in Emerging African Economies, by Patrick Guillaumont, Sylviane
Guillaumont Jeanneney and Aristomène Varoudakis, March 1999.
Working Paper No. 146, Structural Policies for International Competitiveness in Manufacturing: The Case of Cameroon, by Ludvig Söderling,
March 1999.
Working Paper No. 147, China’s Unfinished Open-Economy Reforms: Liberalisation of Services, by Kiichiro Fukasaku, Yu Ma and Qiumei
Yang, April 1999.
Working Paper No. 148, Boom and Bust and Sovereign Ratings, by Helmut Reisen and Julia von Maltzan, June 1999.
Working Paper No. 149, Economic Opening and the Demand for Skills in Developing Countries: A Review of Theory and Evidence, by David
O’Connor and Maria Rosa Lunati, June 1999.
Working Paper No. 150, The Role of Capital Accumulation, Adjustment and Structural Change for Economic Take-off: Empirical Evidence from
African Growth Episodes, by Jean-Claude Berthélemy and Ludvig Söderling, July 1999.
Working Paper No. 151, Gender, Human Capital and Growth: Evidence from Six Latin American Countries, by Donald J. Robbins,
September 1999.
Working Paper No. 152, The Politics and Economics of Transition to an Open Market Economy in Viet Nam, by James Riedel and William
S. Turley, September 1999.
Working Paper No. 153, The Economics and Politics of Transition to an Open Market Economy: China, by Wing Thye Woo, October 1999.
Working Paper No. 154, Infrastructure Development and Regulatory Reform in Sub-Saharan Africa: The Case of Air Transport, by Andrea
E. Goldstein, October 1999.
Working Paper No. 155, The Economics and Politics of Transition to an Open Market Economy: India, by Ashok V. Desai, October 1999.
Working Paper No. 156, Climate Policy Without Tears: CGE-Based Ancillary Benefits Estimates for Chile, by Sébastien Dessus and David
O’Connor, November 1999.
Document de travail No. 157, Dépenses d’éducation, qualité de l’éducation et pauvreté : l’exemple de cinq pays d’Afrique francophone, par
Katharina Michaelowa, avril 2000.
Document de travail No. 158, Une estimation de la pauvreté en Afrique subsaharienne d’après les données anthropométriques, par Christian
Morrisson, Hélène Guilmeau et Charles Linskens, mai 2000.
Working Paper No. 159, Converging European Transitions, by Jorge Braga de Macedo, July 2000.
Working Paper No. 160, Capital Flows and Growth in Developing Countries: Recent Empirical Evidence, by Marcelo Soto, July 2000.
Working Paper No. 161, Global Capital Flows and the Environment in the 21st Century, by David O’Connor, July 2000.
Working Paper No. 162, Financial Crises and International Architecture: A “Eurocentric” Perspective, by Jorge Braga de Macedo,
August 2000.
Document de travail No. 163, Résoudre le problème de la dette : de l’initiative PPTE à Cologne, par Anne Joseph, août 2000.
Working Paper No. 164, E-Commerce for Development: Prospects and Policy Issues, by Andrea Goldstein and David O’Connor,
September 2000.
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Working Paper No. 165, Negative Alchemy? Corruption and Composition of Capital Flows, by Shang-Jin Wei, October 2000.
Working Paper No. 166, The HIPC Initiative: True and False Promises, by Daniel Cohen, October 2000.
Document de travail No. 167, Les facteurs explicatifs de la malnutrition en Afrique subsaharienne, par Christian Morrisson et Charles
Linskens, octobre 2000.
Working Paper No. 168, Human Capital and Growth: A Synthesis Report, by Christopher A. Pissarides, November 2000.
Working Paper No. 169, Obstacles to Expanding Intra-African Trade, by Roberto Longo and Khalid Sekkat, March 2001.
Working Paper No. 170, Regional Integration In West Africa, by Ernest Aryeetey, March 2001.
Working Paper No. 171, Regional Integration Experience in the Eastern African Region, by Andrea Goldstein and Njuguna S. Ndung’u,
March 2001.
Working Paper No. 172, Integration and Co-operation in Southern Africa, by Carolyn Jenkins, March 2001.
Working Paper No. 173, FDI in Sub-Saharan Africa, by Ludger Odenthal, March 2001
Document de travail No. 174, La réforme des télécommunications en Afrique subsaharienne, par Patrick Plane, mars 2001.
Working Paper No. 175, Fighting Corruption in Customs Administration: What Can We Learn from Recent Experiences?, by Irène Hors;
April 2001.
Working Paper No. 176, Globalisation and Transformation: Illusions and Reality, by Grzegorz W. Kolodko, May 2001.
Working Paper No. 177, External Solvency, Dollarisation and Investment Grade: Towards a Virtuous Circle?, by Martin Grandes, June 2001.
Document de travail No. 178, Congo 1965-1999: Les espoirs déçus du « Brésil africain », par Joseph Maton avec Henri-Bernard Solignac
Lecomte, septembre 2001.
Working Paper No. 179, Growth and Human Capital: Good Data, Good Results, by Daniel Cohen and Marcelo Soto, September 2001.
Working Paper No. 180, Corporate Governance and National Development, by Charles P. Oman, October 2001.
Working Paper No. 181, How Globalisation Improves Governance, by Federico Bonaglia, Jorge Braga de Macedo and Maurizio Bussolo,
November 2001.
Working Paper No. 182, Clearing the Air in India: The Economics of Climate Policy with Ancillary Benefits, by Maurizio Bussolo and David
O’Connor, November 2001.
Working Paper No. 183, Globalisation, Poverty and Inequality in sub-Saharan Africa: A Political Economy Appraisal, by Yvonne M. Tsikata,
December 2001.
Working Paper No. 184, Distribution and Growth in Latin America in an Era of Structural Reform: The Impact of Globalisation, by Samuel
A. Morley, December 2001.
Working Paper No. 185, Globalisation, Liberalisation, Poverty and Income Inequality in Southeast Asia, by K.S. Jomo, December 2001.
Working Paper No. 186, Globalisation, Growth and Income Inequality: The African Experience, by Steve Kayizzi-Mugerwa, December 2001.
Working Paper No. 187, The Social Impact of Globalisation in Southeast Asia, by Mari Pangestu, December 2001.
Working Paper No. 188, Where Does Inequality Come From? Ideas and Implications for Latin America, by James A. Robinson,
December 2001.
Working Paper No. 189, Policies and Institutions for E-Commerce Readiness: What Can Developing Countries Learn from OECD Experience?,
by Paulo Bastos Tigre and David O’Connor, April 2002.
Document de travail No. 190, La réforme du secteur financier en Afrique, par Anne Joseph, juillet 2002.
Working Paper No. 191, Virtuous Circles? Human Capital Formation, Economic Development and the Multinational Enterprise, by Ethan
B. Kapstein, August 2002.
Working Paper No. 192, Skill Upgrading in Developing Countries: Has Inward Foreign Direct Investment Played a Role?, by Matthew
J. Slaughter, August 2002.
Working Paper No. 193, Government Policies for Inward Foreign Direct Investment in Developing Countries: Implications for Human Capital
Formation and Income Inequality, by Dirk Willem te Velde, August 2002.
Working Paper No. 194, Foreign Direct Investment and Intellectual Capital Formation in Southeast Asia, by Bryan K. Ritchie, August 2002.
Working Paper No. 195, FDI and Human Capital: A Research Agenda, by Magnus Blomström and Ari Kokko, August 2002.
Working Paper No. 196, Knowledge Diffusion from Multinational Enterprises: The Role of Domestic and Foreign Knowledge-Enhancing
Activities, by Yasuyuki Todo and Koji Miyamoto, August 2002.
Working Paper No. 197, Why Are Some Countries So Poor? Another Look at the Evidence and a Message of Hope, by Daniel Cohen and
Marcelo Soto, October 2002.
Working Paper No. 198, Choice of an Exchange-Rate Arrangement, Institutional Setting and Inflation: Empirical Evidence from Latin America,
by Andreas Freytag, October 2002.
Working Paper No. 199, Will Basel II Affect International Capital Flows to Emerging Markets?, by Beatrice Weder and Michael Wedow,
October 2002.
Working Paper No. 200, Convergence and Divergence of Sovereign Bond Spreads: Lessons from Latin America, by Martin Grandes,
October 2002.
Working Paper No. 201, Prospects for Emerging-Market Flows amid Investor Concerns about Corporate Governance, by Helmut Reisen,
November 2002.
Working Paper No. 202, Rediscovering Education in Growth Regressions, by Marcelo Soto, November 2002.
40 © OECD 2012
Working Paper No. 203, Incentive Bidding for Mobile Investment: Economic Consequences and Potential Responses, by Andrew Charlton,
January 2003.
Working Paper No. 204, Health Insurance for the Poor? Determinants of participation Community-Based Health Insurance Schemes in Rural
Senegal, by Johannes Jütting, January 2003.
Working Paper No. 205, China’s Software Industry and its Implications for India, by Ted Tschang, February 2003.
Working Paper No. 206, Agricultural and Human Health Impacts of Climate Policy in China: A General Equilibrium Analysis with Special
Reference to Guangdong, by David O’Connor, Fan Zhai, Kristin Aunan, Terje Berntsen and Haakon Vennemo, March 2003.
Working Paper No. 207, India’s Information Technology Sector: What Contribution to Broader Economic Development?, by Nirvikar Singh,
March 2003.
Working Paper No. 208, Public Procurement: Lessons from Kenya, Tanzania and Uganda, by Walter Odhiambo and Paul Kamau,
March 2003.
Working Paper No. 209, Export Diversification in Low-Income Countries: An International Challenge after Doha, by Federico Bonaglia and
Kiichiro Fukasaku, June 2003.
Working Paper No. 210, Institutions and Development: A Critical Review, by Johannes Jütting, July 2003.
Working Paper No. 211, Human Capital Formation and Foreign Direct Investment in Developing Countries, by Koji Miyamoto, July 2003.
Working Paper No. 212, Central Asia since 1991: The Experience of the New Independent States, by Richard Pomfret, July 2003.
Working Paper No. 213, A Multi-Region Social Accounting Matrix (1995) and Regional Environmental General Equilibrium Model for India
(REGEMI), by Maurizio Bussolo, Mohamed Chemingui and David O’Connor, November 2003.
Working Paper No. 214, Ratings Since the Asian Crisis, by Helmut Reisen, November 2003.
Working Paper No. 215, Development Redux: Reflections for a New Paradigm, by Jorge Braga de Macedo, November 2003.
Working Paper No. 216, The Political Economy of Regulatory Reform: Telecoms in the Southern Mediterranean, by Andrea Goldstein,
November 2003.
Working Paper No. 217, The Impact of Education on Fertility and Child Mortality: Do Fathers Really Matter Less than Mothers?, by Lucia
Breierova and Esther Duflo, November 2003.
Working Paper No. 218, Float in Order to Fix? Lessons from Emerging Markets for EU Accession Countries, by Jorge Braga de Macedo and
Helmut Reisen, November 2003.
Working Paper No. 219, Globalisation in Developing Countries: The Role of Transaction Costs in Explaining Economic Performance in India,
by Maurizio Bussolo and John Whalley, November 2003.
Working Paper No. 220, Poverty Reduction Strategies in a Budget-Constrained Economy: The Case of Ghana, by Maurizio Bussolo and
Jeffery I. Round, November 2003.
Working Paper No. 221, Public-Private Partnerships in Development: Three Applications in Timor Leste, by José Braz, November 2003.
Working Paper No. 222, Public Opinion Research, Global Education and Development Co-operation Reform: In Search of a Virtuous Circle, by Ida
Mc Donnell, Henri-Bernard Solignac Lecomte and Liam Wegimont, November 2003.
Working Paper No. 223, Building Capacity to Trade: What Are the Priorities?, by Henry-Bernard Solignac Lecomte, November 2003.
Working Paper No. 224, Of Flying Geeks and O-Rings: Locating Software and IT Services in India’s Economic Development, by David
O’Connor, November 2003.
Document de travail No. 225, Cap Vert: Gouvernance et Développement, par Jaime Lourenço and Colm Foy, novembre 2003.
Working Paper No. 226, Globalisation and Poverty Changes in Colombia, by Maurizio Bussolo and Jann Lay, November 2003.
Working Paper No. 227, The Composite Indicator of Economic Activity in Mozambique (ICAE): Filling in the Knowledge Gaps to Enhance
Public-Private Partnership (PPP), by Roberto J. Tibana, November 2003.
Working Paper No. 228, Economic-Reconstruction in Post-Conflict Transitions: Lessons for the Democratic Republic of Congo (DRC), by
Graciana del Castillo, November 2003.
Working Paper No. 229, Providing Low-Cost Information Technology Access to Rural Communities In Developing Countries: What Works?
What Pays? by Georg Caspary and David O’Connor, November 2003.
Working Paper No. 230, The Currency Premium and Local-Currency Denominated Debt Costs in South Africa, by Martin Grandes, Marcel
Peter and Nicolas Pinaud, December 2003.
Working Paper No. 231, Macroeconomic Convergence in Southern Africa: The Rand Zone Experience, by Martin Grandes, December 2003.
Working Paper No. 232, Financing Global and Regional Public Goods through ODA: Analysis and Evidence from the OECD Creditor
Reporting System, by Helmut Reisen, Marcelo Soto and Thomas Weithöner, January 2004.
Working Paper No. 233, Land, Violent Conflict and Development, by Nicolas Pons-Vignon and Henri-Bernard Solignac Lecomte,
February 2004.
Working Paper No. 234, The Impact of Social Institutions on the Economic Role of Women in Developing Countries, by Christian Morrisson
and Johannes Jütting, May 2004.
Document de travail No. 235, La condition desfemmes en Inde, Kenya, Soudan et Tunisie, par Christian Morrisson, août 2004.
Working Paper No. 236, Decentralisation and Poverty in Developing Countries: Exploring the Impact, by Johannes Jütting,
Céline Kauffmann, Ida Mc Donnell, Holger Osterrieder, Nicolas Pinaud and Lucia Wegner, August 2004.
Working Paper No. 237, Natural Disasters and Adaptive Capacity, by Jeff Dayton-Johnson, August 2004.
© OECD 2012 41
Working Paper No. 238, Public Opinion Polling and the Millennium Development Goals, by Jude Fransman, Alphonse L. MacDonnald,
Ida Mc Donnell and Nicolas Pons-Vignon, October 2004.
Working Paper No. 239, Overcoming Barriers to Competitiveness, by Orsetta Causa and Daniel Cohen, December 2004.
Working Paper No. 240, Extending Insurance? Funeral Associations in Ethiopia and Tanzania, by Stefan Dercon, Tessa Bold, Joachim
De Weerdt and Alula Pankhurst, December 2004.
Working Paper No. 241, Macroeconomic Policies: New Issues of Interdependence, by Helmut Reisen, Martin Grandes and Nicolas Pinaud,
January 2005.
Working Paper No. 242, Institutional Change and its Impact on the Poor and Excluded: The Indian Decentralisation Experience, by
D. Narayana, January 2005.
Working Paper No. 243, Impact of Changes in Social Institutions on Income Inequality in China, by Hiroko Uchimura, May 2005.
Working Paper No. 244, Priorities in Global Assistance for Health, AIDS and Population (HAP), by Landis MacKellar, June 2005.
Working Paper No. 245, Trade and Structural Adjustment Policies in Selected Developing Countries, by Jens Andersson, Federico Bonaglia,
Kiichiro Fukasaku and Caroline Lesser, July 2005.
Working Paper No. 246, Economic Growth and Poverty Reduction: Measurement and Policy Issues, by Stephan Klasen, (September 2005).
Working Paper No. 247, Measuring Gender (In)Equality: Introducing the Gender, Institutions and Development Data Base (GID),
by Johannes P. Jütting, Christian Morrisson, Jeff Dayton-Johnson and Denis Drechsler (March 2006).
Working Paper No. 248, Institutional Bottlenecks for Agricultural Development: A Stock-Taking Exercise Based on Evidence from Sub-Saharan
Africa by Juan R. de Laiglesia, March 2006.
Working Paper No. 249, Migration Policy and its Interactions with Aid, Trade and Foreign Direct Investment Policies: A Background Paper, by
Theodora Xenogiani, June 2006.
Working Paper No. 250, Effects of Migration on Sending Countries: What Do We Know? by Louka T. Katseli, Robert E.B. Lucas and
Theodora Xenogiani, June 2006.
Document de travail No. 251, L’aide au développement et les autres flux nord-sud : complémentarité ou substitution ?, par Denis Cogneau et
Sylvie Lambert, juin 2006.
Working Paper No. 252, Angel or Devil? China’s Trade Impact on Latin American Emerging Markets, by Jorge Blázquez-Lidoy, Javier
Rodríguez and Javier Santiso, June 2006.
Working Paper No. 253, Policy Coherence for Development: A Background Paper on Foreign Direct Investment, by Thierry Mayer, July 2006.
Working Paper No. 254, The Coherence of Trade Flows and Trade Policies with Aid and Investment Flows, by Akiko Suwa-Eisenmann and
Thierry Verdier, August 2006.
Document de travail No. 255, Structures familiales, transferts et épargne : examen, par Christian Morrisson, août 2006.
Working Paper No. 256, Ulysses, the Sirens and the Art of Navigation: Political and Technical Rationality in Latin America, by Javier Santiso
and Laurence Whitehead, September 2006.
Working Paper No. 257, Developing Country Multinationals: South-South Investment Comes of Age, by Dilek Aykut and Andrea
Goldstein, November 2006.
Working Paper No. 258, The Usual Suspects: A Primer on Investment Banks’ Recommendations and Emerging Markets, by Sebastián Nieto-
Parra and Javier Santiso, January 2007.
Working Paper No. 259, Banking on Democracy: The Political Economy of International Private Bank Lending in Emerging Markets, by Javier
Rodríguez and Javier Santiso, March 2007.
Working Paper No. 260, New Strategies for Emerging Domestic Sovereign Bond Markets, by Hans Blommestein and Javier Santiso, April
2007.
Working Paper No. 261, Privatisation in the MEDA region. Where do we stand?, by Céline Kauffmann and Lucia Wegner, July 2007.
Working Paper No. 262, Strengthening Productive Capacities in Emerging Economies through Internationalisation: Evidence from the
Appliance Industry, by Federico Bonaglia and Andrea Goldstein, July 2007.
Working Paper No. 263, Banking on Development: Private Banks and Aid Donors in Developing Countries, by Javier Rodríguez and Javier
Santiso, November 2007.
Working Paper No. 264, Fiscal Decentralisation, Chinese Style: Good for Health Outcomes?, by Hiroko Uchimura and Johannes Jütting,
November 2007.
Working Paper No. 265, Private Sector Participation and Regulatory Reform in Water supply: the Southern Mediterranean Experience, by
Edouard Pérard, January 2008.
Working Paper No. 266, Informal Employment Re-loaded, by Johannes Jütting, Jante Parlevliet and Theodora Xenogiani, January 2008.
Working Paper No. 267, Household Structures and Savings: Evidence from Household Surveys, by Juan R. de Laiglesia and Christian
Morrisson, January 2008.
Working Paper No. 268, Prudent versus Imprudent Lending to Africa: From Debt Relief to Emerging Lenders, by Helmut Reisen and Sokhna
Ndoye, February 2008.
Working Paper No. 269, Lending to the Poorest Countries: A New Counter-Cyclical Debt Instrument, by Daniel Cohen, Hélène Djoufelkit-
Cottenet, Pierre Jacquet and Cécile Valadier, April 2008.
Working Paper No.270, The Macro Management of Commodity Booms: Africa and Latin America’s Response to Asian Demand, by Rolando
Avendaño, Helmut Reisen and Javier Santiso, August 2008.
42 © OECD 2012
Working Paper No. 271, Report on Informal Employment in Romania, by Jante Parlevliet and Theodora Xenogiani, July 2008.
Working Paper No. 272, Wall Street and Elections in Latin American Emerging Democracies, by Sebastián Nieto-Parra and Javier Santiso,
October 2008. Working Paper No. 273, Aid Volatility and Macro Risks in LICs, by Eduardo Borensztein, Julia Cage, Daniel Cohen and Cécile Valadier,
November 2008.
Working Paper No. 274, Who Saw Sovereign Debt Crises Coming?, by Sebastián Nieto-Parra, November 2008.
Working Paper No. 275, Development Aid and Portfolio Funds: Trends, Volatility and Fragmentation, by Emmanuel Frot and Javier Santiso,
December 2008.
Working Paper No. 276, Extracting the Maximum from EITI, by Dilan Ölcer, February 2009.
Working Paper No. 277, Taking Stock of the Credit Crunch: Implications for Development Finance and Global Governance, by Andrew Mold,
Sebastian Paulo and Annalisa Prizzon, March 2009.
Working Paper No. 278, Are All Migrants Really Worse Off in Urban Labour Markets? New Empirical Evidence from China, by Jason
Gagnon, Theodora Xenogiani and Chunbing Xing, June 2009.
Working Paper No. 279, Herding in Aid Allocation, by Emmanuel Frot and Javier Santiso, June 2009.
Working Paper No. 280, Coherence of Development Policies: Ecuador’s Economic Ties with Spain and their Development Impact, by Iliana
Olivié, July 2009.
Working Paper No. 281, Revisiting Political Budget Cycles in Latin America, by Sebastián Nieto-Parra and Javier Santiso, August 2009.
Working Paper No. 282, Are Workers’ Remittances Relevant for Credit Rating Agencies?, by Rolando Avendaño, Norbert Gaillard and
Sebastián Nieto-Parra, October 2009.
Working Paper No. 283, Are SWF Investments Politically Biased? A Comparison with Mutual Funds, by Rolando Avendaño and Ja vier
Santiso, December 2009.
Working Paper No. 284, Crushed Aid: Fragmentation in Sectoral Aid, by Emmanuel Frot and Javier Santiso, January 2010.
Working Paper No. 285, The Emerging Middle Class in Developing Countries, by Homi Kharas, January 2010.
Working Paper No. 286, Does Trade Stimulate Innovation? Evidence from Firm-Product Data, by Ana Margarida Fernandes and Caroline
Paunov, January 2010.
Working Paper No. 287, Why Do So Many Women End Up in Bad Jobs? A Cross-Country Assessment, by Johannes Jütting, Angela Luci
and Christian Morrisson, January 2010.
Working Paper No. 288, Innovation, Productivity and Economic Development in Latin America and the Caribbean, by Christian Daude,
February 2010.
Working Paper No. 289, South America for the Chinese? A Trade-Based Analysis, by Eliana Cardoso and Márcio Holland, April 2010.
Working Paper No. 290, On the Role of Productivity and Factor Accumulation in Economic Development in Latin America and the Caribbean,
by Christian Daude and Eduardo Fernández-Arias, April 2010.
Working Paper No. 291, Fiscal Policy in Latin America: Countercyclical and Sustainable at Last?, by Christian Daude, Ángel Melguizo and
Alejandro Neut, July 2010.
Working Paper No. 292, The Renminbi and Poor-Country Growth, by Christopher Garroway, Burcu Hacibedel, Helmut Reisen and
Edouard Turkisch, September 2010.
Working Paper No. 293, Rethinking the (European) Foundations of Sub-Saharan African Regional Economic Integration, by Peter Draper,
September 2010.
Working Paper No. 294, Taxation and more representation? On fiscal policy, social mobility and democracy in Latin America, by Christian
Daude and Angel Melguizo, September 2010.
Working Paper No. 295, The Economy of the Possible: Pensions and Informality in Latin America, by Rita Da Costa, Juan R. de Laiglesia,
Emmanuelle Martínez and Angel Melguizo, January 2011.
Working Paper No. 296, The Macroeconomic Effects of Large Appreciations, by Markus Kappler, Helmut Reisen, Moritz Schularick and
Edourd Turkisch, February 2011.
Working Paper No. 297, Ascendance by descendants? On intergenerational education mobility in Latin America, by Christian Daude,
March 2011.
Working Paper No. 298, The Impact of Migration Policies on Rural Household Welfare in Mexico and Nicaragua, by J. Edward Taylor and
Mateusz Filipski, May 2011.
Working Paper No. 299, Continental vs. intercontinental migration: an empirical analysis of the impact of immigration reforms on Burkina
Faso, by Fleur Wouterse, May 2011.
Working Paper No. 300, “Stay with us”? The impact of emigration on wages in Honduras, by Jason Gagnon, June 2011.
Working Paper No. 301, Public infrastructure investment and fiscal sustainability in Latin America: Incompatible goals?, by Luis Carranza,
Angel Melguizo and Christian Daude, June 2011.
Working Paper No. 302, Recalibrating Development Co-operation: How Can African Countries Benefit from Emerging Partners?, by Myriam
Dahman Saidi and Christina Wolf, July 2011.
Working Paper No. 303, Sovereign Wealth Funds as Investors in Africa: Opportunities and Barriers, by Edouard Turkish, August 2011.
Working Paper No. 304, The Process of Reform in Latin America: A Review Essay, by Jeff Dayton-Johnson, Juliana Londoño and Sebastián
Nieto-Parra, October 2011.
Working Paper No. 305, Being “Middle-Class” in Latin America, by Francesca Castellani and Gwenn Parent, October 2011.
© OECD 2012 43
Working Paper No. 306, Revisiting MDG Cost Estimates from a Domestic Resource Mobilisation Perspective, by Vararat Atisophon, Jesus
Bueren, Gregory De Paepe, Christopher Garroway and Jean-Philippe Stijns, December 2011.
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